Silver Price Outlook – Silver Pulls Back Slightly on Thursday

Silver Technical Analysis

The silver market initially did try to rally just a bit, but it gave back those gains and now it looks like we are starting to see a little bit of sideways chop. That does make a certain amount of sense because the market is going to be suffering from a lack of volume this time of year. And of course, the $39 level is a bit of a barrier. Underneath current pricing, we have the $37.50 level, which of course is previous resistance and has been support more than once. So, I think we’re probably going to try to carve out some type of range here. The 50 day EMA is racing towards the $37.50 level as well.

So, I think we’re just settling down. It is worth noting that the Federal Reserve meeting in September is expected to be a rate cut. And as a result, we have a scenario where traders are going to look at this through the prism of what happens next? That’s one major part of the equation. The US dollar shrinking obviously helps silver, but we also have to keep in mind that this is an industrial metal. So, what will the demand be like?

For years, I’ve been hearing stories about how demand far outstrips supply, but that doesn’t always show up in the silver market. It has been known to fall occasionally as well. So, at this point, it’s going to be interesting to see how this plays out. Choppiness is something that I would expect, but I do expect buyers on dips.

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